A TECHNICAL VIEW ON CNX--BANK NIFTY FOR—28.4.2021

 

CNX--BANK NIFTY

Open-32228.95--High-32807.10--Low—32152.95--Close-32735.35 on 27.4.2021

Support:32613.10/32465.45/32415.15/32347.20/32157.05/32130/31783.60/31661/31649.49/31297.30/31264.05/32260/31015/30915/30870/30843/30669/30648/30540/30338.35/30220.20/29687.70/29612.55/29156/28976.75/28525.45/28388.65/27652/26641—560/26441/25598.

Resistance;32842.30/33306.80/33990.80/34360/34430/34658.70/34893/34976/35428.15/36455.15/36497/36615/37232/37708.75.

(Bold and underlined figures are most important) 

It continued its up move today and closed with a good gain of 460.20 points. It is still into medium term correction mode but the good thing is that it has moved above its long term correction mode threshold point of 32613.10 and also above its short term moving averages which is a very positive sign. Please note that as long as it holds the range of 32613.10—32465—32415---32240---32130 it could continue the up move but sustained break below 32613.10 could again kick off the down move but it will accelerate down move only if it sustains below 32130 level on the closing basis. looking at the current setup further rise seems quite possible as of now.

Critical Support points are at :--32613.10---32465---32240---32130---31889---31606.

Critical Resistance points are at :--32847---33058---33196---33511---34057.

Kindly note that the on-going up move is a pullback rally and it may exhaust at any of these points  or earlier also but it seems that it is gaining some strength and may move up further provided it holds its most critical point of 32613.10 on the closing basis. Please note that as of now the bias seems to be positive.

In view of the above observation for safe traders long trade can be tried on decline near but not below 32613.10 or can buy if it moves above 32810 and sustain for some time. However aggressive traders can try buy on decline at appropriate points or near 32240 but not below it or can buy if it moves above 32810 and sustain for some time. Since it is still into medium term  corrective mode  therefore short trade can also be tried on the reasonable rise  or can be tried on the price breakdown for taking advantage of the down move.

NOTE: - If it opens up with huge gap up then wait for it to settle down before initiating long position, but short trade can be attempted on huge gap up if it is near the selling point and vice versa . Since, it is showing volatility so any type of trade should be squared off during the day, if you don’t have reasonable profit margin in the trade. Day squaring off is strongly suggested in any case.

TRADING STRATEGY(Suggested)

1. Buy on decline if it manages to hold 32613.10 but not below it with a stop loss of 32450.   

Or

Buy if it moves above 32810 and maintain for some time  with a stop loss of 32700.

Or

Buy on decline at appropriate points of near 32240 but not below it with a stop loss of 32100. It is for aggressive traders and could be a highly risky trade.

2. Sell on the rise near or within the range of 33350---33450 with a stop loss of 33550. It could be a risky trade but worth trying for intraday gain.

Or

Sell if it maintains below 32100 for some time with a stop loss of 32250. It could be a risky trade but worth trying for intraday gain.

Disclaimer:-The view expressed here are solely of the author and he is not at all responsible in any way for the outcome of the trade you enter based on the above view.

Kindly note that make your cost your stop loss in favorable  trade and then trail it as the price move up/down to gain maximum profit and avoid losses. Use support and resistance levels as entry, exit, target and trailing stop loss points. DO NOT TRADE WITHOUT STOP LOSS.

 Note: Price stated here are of spot market.

Contact me for strategic guidance to enter and exit trade.

Thanks 

Narendra Kumar Surana

suranank@gmail.com

Mobile—8240951127/9831313654.